WEG sees consistent demand for short-cycle product

WEG sees a consistent recovery of demand for short-cycle equipment, the most impacted by the pandemic. The improvement seen both in the domestic and foreign markets helped boost the company’s results in the third quarter. On the period, net income has grown 54% year over year, to R$644,2 million, while net income rose 43,5% to R$4,8 billion.

In Brazil, demand for short-cycle equipment has already returned to pre-pandemic levels in all business areas, Chief Financial Officer André Rodrigues says. Abroad, demand is also recovering but at a slower pace. The company expects to resume pre-pandemic levels in the United States and Europe only in 2021.

Source: Valor International

https://www.valor.com.br/international/briefs

Romi’s order backlog grows 41% in 3Q

Romi’s order backlog grew 41% year over year in the third quarter, to R$472.1 million. The company says the increase reflects the resumption of investments in the domestic market since June, among other factors. Romi makes machinery and equipment used by several industrial sectors. In the third quarter, the business unit focused on the Brazilian market and other Latin American markets saw the order backlog increase 127%, to R$255,3 million. New orders grew 140,3% on the same comparison base, to R$223,1 million. “Even in an environment still uncertain, the recovery of industrial activities, the higher confidence of industrial companies, the lower basic interest rate and the weaker local currency boosted the volume of orders,” the company said in a report.

Source: Valor International

https://www.valor.com.br/international/briefs

Caixa may create subsidiary for digital operations

Government-owned bank Caixa is in discussions with Brazilian Central Bank to create a subsidiary for its digital operation, which has 100 million clients who started using online banking during the pandemic. The formal creation of the digital arm, currently being called Caixa Banco Digital, is the first step for an initial public offering (IPO).

The plan for going public was mentioned on Tuesday by Economy Minister Paulo Guedes at a conference on business opportunities between Brazil and the United States. According to the minister, Brazil is the fourth-largest digital market in the world.

Source: Valor International

https://www.valor.com.br/international/briefs

Government opens bidding for São Francisco river canal construction

The government initiated the bidding process for an additional 115 km of canal extending the São Francisco River. Budgeted at R$1.77 billion, the branch will bring water to Chapada do Apodi, in the estate of Rio Grande do Norte and known for fruit production.

The small farmers in the region, estimated in 8,000, believe that the project could create an irrigated fruit pole with size similar to the one existing today in Pernambuco and Bahia, in the São Francisco River Valley. Construction is expected to last four years.

Source: Valor International

https://www.valor.com.br/international/briefs

Brazil and US sign trade facilitation package

The United States signed Monday with Brazil a trade facilitation, good regulatory practices and anti-corruption package. From the Brazilian standpoint, it is a concrete result of the “strategic partnership” chosen by President Jair Bolsonaro. From the American, a demonstration of pragmatism with the region’s economy. The two countries also discuss how to reduce the region’s dependence on Chinese strategic components, US Secretary of State Mike Pompeo said. The US has pressured Brazil to ban Chinese equipment from the 5G Internet infrastructure, claiming that these components may bring risk of espionage. Mr. Bolsonaro said that, in partnership with US President Donald Trump, a “new stage of cooperation” is inaugurated. “Brazil’s priority in this relationship is clear and sincere,” he added. The agreements signed deal with non-tariff issues, but Mr. Bolsonaro said that, for the future, he foresees “a daring tax agreement, a comprehensive trade agreement and a bold partnership” between the countries.

Source: Valor International

https://www.valor.com.br/international/briefs

High demand for construction materials pushes Saint-Gobain to invest

Motivated by high demand for construction materials in Brazil, French group Saint-Gobain decided to accelerate investments to build a new factory of fiber cement tiles and two plants to make its Quartzolit products – industrial mortars, reinforcements and concrete protections. Without revealing costs, Saint-Gobain said the new factories will be in North and Southeast regions. The company revenue between January and September was 5% higher than in the same period last year, but there was a jump of 38% in September alone.

Source: Valor International

https://www.valor.com.br/international/briefs

EDP and Unidas partner to boost electric cars

Energy company EDP and car rental firm Unidas signed a partnership with the goal to boost electric cars in Brazil. Unidas will buy and rent the cars and EDP will offer charging infrastructure. In the first phase of the project, 100 cars 100% electric will be available for rent in São Paulo, Brasília and Curitiba. In 2021, the fleet will be expanded to 600 vehicles. This is the first commercial partnership by EDP in this segment. Until then, the company had been investing in development projects, such as the implementation of an ultra-fast charging network. With investments of R$32.9 million, the project foresees the installation of 64 charging stations covering 2,500 kilometers to connect São Paulo to Vitória, Curitiba and Florianópolis.

Source: Valor International

https://www.valor.com.br/international/briefs

Aegea favorite in auction of sewage private-public partnerships

Aegea, one of the largest private-sector water companies in Brazil, will compete this week in auctions for private-public partnership contracts with Companhia Espírito-santense de Saneamento (Cesan), scheduled for Tuesday, and with Empresa de Saneamento do Estado do Mato Grosso do Sul (Sanesul) on October 23. Aegea is considered a favorite in what is going to be disputed auctions. Seven groups are competing for Cesan’s 30 years concession, which requires investments of R$580 million, of which R$180 million must be in the first 5 years. Sanesul received four bids for the 30-year concession with investments of R$1 billion.

Source: Valor International

https://www.valor.com.br/international/briefs

Tetra Pak hits Brazilian water market

Cardboard packaging by Tetra Pak, the world’s biggest player in this segment, will be used by at least three Brazilian water brands, a product category still dominated by glass and plastic. The sustainable appeal promises to be the great advantage of the new packaging. Cia de Bebidas Poty has officially launched on Friday the first national water brand on paperboard, the A9. The other two water brands that should reach the market soon are Água na Caixa and Simply Water. Making the boxed water viable in the Brazilian market, which is the second-largest for Tetra Pak in the world, is part of the multinational company’s portfolio diversification strategy — it intends to go beyond the traditional milk and juice categories.

Source: Valor International

https://www.valor.com.br/international/briefs

RenovaBio’s carbon credits are taking off

The new Brazilian carbon credit, called CBio, a key instrument of RenovaBio, the federal policy to stimulate biofuels, gained traction after confirmation of new emissions targets for 2020 — revised because of the pandemic — and has already attracted more than R$300 million on the Exchange B3. These are new resources for biofuel producers coming from fuel distributors, which must meet their targets at RenovaBio. The commercialization reached R$200 million October as of the 15th, two-thirds of the global amount traded since the beginning of the transactions, in June. The growth is pushed by the increase of purchases by distributors and the surge in CBios prices, which reached the average price of R$49,96 on Thursday. The price more than doubled in 30 days.

Source: Valor International

https://www.valor.com.br/international/briefs